The classification of funds is mainly based on the asset allocation ratio, performance comparison benchmark and investment target determined by funds in the prospectus. The asset allocation ratio, performance comparison benchmark and investment target determined by the Fund in the prospectus represent the commitment of the Fund to investors and constitute the basic constraint on the future investment behavior of fund managers. Based on this, fund classification can ensure the stability and fairness of classification.

First-class classification standard

First, carry out primary classification, and then carry out secondary or tertiary classification according to the situation. The first-level classification is based on the Measures for the Operation and Management of Securities Investment Funds promulgated and implemented by China Securities Regulatory Commission on July/KLOC-0, 2004. Article 29 of the Measures stipulates that fund contracts and fund prospectuses shall specify the types of funds in accordance with the following provisions:

(1) More than 80% of the fund assets are invested in stocks, which are stock funds;

(2) More than 80% of the fund assets are invested in bonds, which are bond funds;

(3) Money market funds that only invest in money market instruments;

(four) investment in stocks, bonds and money market instruments, the proportion of stock investment and bond investment does not meet the provisions of items (a) and (b), for the mixed fund;

(5) Other fund categories as stipulated by the China Securities Regulatory Commission.

Secondary classification standard

1. Equity funds: funds that mainly invest in stocks, and more than 60% of the fund assets are invested in stocks.

2. Index funds: funds that mainly invest in index stocks.

3. Partial stock funds: stock investment is the main investment, and the median allocation ratio of stock investment is greater than that of bond assets.

4. Stock-bond balanced fund: the allocation ratio of stock assets and bond assets can be flexibly allocated according to market conditions, and the difference between the median allocation ratio of stock investment and the median allocation ratio of bond assets is generally less than 5%.

5. Partial debt funds: mainly invest in bonds, and the median allocation ratio of bond investment is greater than stock assets.

6. Bond funds: including two types of funds. One is a pure bond fund that does not invest in stocks, and the other is a fund that only subscribes for new shares but does not actively invest in stocks.

7. Capital preservation fund: a fund that guarantees that investors can at least get all or part of the investment principal when the investment expires, or promises a certain percentage of return.

8. Money fund: a fund that mainly invests in money market instruments.